The law you quoted relates to the expiration of a plastic card as a valid document for re-entry, not to the expiration of the PR status. These is a very substantial difference (as there is a difference between the validity of a non-immigrant visa and the validity of a non-immigrant visa status).
The PR status does not automatically expire if you are out of the country for more than a year without obtaining a re-entry permit.
However, the validity of the plastic card as a re-entry document does expire.
See the link provided by bb2 in this thread for the detailed info on the law.
Of course, you are absolutely right that in practice most people who stayed out of US for more than a year without a re-entry permit will not qualify for a returning resident visa and hence will loose their PR status.
Last edited by baikal3; 14th September 2002 at 02:30 PM.
N-400 [Chicago office, via Nebraska Service Cntr]
Rec'd date: 12/06/2006
FP notice date: 12/20/2006
FP taken (Indianapolis): 01/11/2007
2nd FP notice 09/09/2008
2ndFP taken (Indianapolis) 09/26/2008
Interview letter 01/24/2009
Interview 03/26/2009 (completed)
Oath letter rec'd 04/29/09
Oath date 05/14/09 (completed)
U.S. pssprt applied and rec'd (Chicago pssprt agency) 05/22/2009
I am not a lawyer. Anything I say here is my personal opinion and should not be viewed as legal advice.